“Going Green” is about to take on new meaning. Talk of stopping the use of plastic is going to mean more than cutting down on the purchase of disposable products and purchasing cloth shopping sacks. America is finally feeling the effects of the “Charge It” generation. Hold on to your boots kids, we are about to return to more disciplined times.
Most prevalent in the headlines is the sub-prime mortgage industry. Firm after firm has imploded, and the Wall Street Firms that invested heavily in those mortgages are about to topple. People who trusted these investment firms to manage retirement accounts have collectively lost billions of dollars, which presents a crisis for those ready to retire. These Baby-Boomers are now faced with working well into their seventies to compensate for the losses.
America’s homeless population rises by the day, as banks file foreclosure actions in rising numbers. People are aware for the first time in a long time that the loaf of bread which was $1.29 last week now costs $1.40. Comparison shopping is back in style.I can visualize the nightmare. The same children that were spoiled rotten with designer clothing at top prices are going to be holding their breath until they turn blue. Gone are the days where a credit card can be handed over with a “Now dear, use good judgment”. The reign of terror created by American eagle, Aeropostle and others is just about over.
Over a year ago, I voiced an opinion that the predicted “nine month cycle” of a real estate crisis would not turn out as the “experts” were forecasting. We can no longer use plastic to put ourselves into debt for expensive video game systems, designer clothing and other frivolous commodities.
Now that we have people making mortgage payments and tax payments courtesy of Visa and American Express, what happens when they default on those payments? The cycle has to stop.
Cut the cards, shred them, burn them …throw away the remains. If you cannot pay for it in cash, don’t buy it. If you cannot qualify for an A mortgage do not buy a home. Let personal responsibility reign and for heaven’s sake, when you say “I’m going green “apply the philosophy to your budget as well.
